Legislative Update

Legislative Update Looks at New and Enacted Bills from CO, NH, RI and IL

Bills Cover Ownership Transfers, Vehicle Appraisals, Emission Controls, and Auto-Processing of Salvage Certificates

Published May 24, 2022 - Written by IAA, Inc.


Summary

IAA’s May 2022 Legislative Update looks at new and enacted legislation from CO, NH, RI and IL covering ownership transfers, vehicle appraisals, emission controls, and auto-processing of salvage certificates. 

IAA, Inc. is dedicated to being proactive when monitoring legislative and regulatory matters that affect our customers and our industry. We believe being engaged with the legislative process is critical to the auto auction industry to promote responsible business conduct and continued healthy expansion. IAA works with lobbyists, insurance companies and other industry participants towards seeing our customers’ needs are met when it comes to legislative matters that may affect the industry. 

NEW BILLS 

Colorado Senate Bill 179

Introduced March 25, 2022; Last amended May 3, 2022

This bill pertains to emission control systems. Section 5 of the bill prohibits a person, on or after January 1, 2024, from tampering with a motor vehicle's emission control system, conveying or offering to convey a motor vehicle with an emission control system that has been tampered with, or operating a motor vehicle with an emission control system that has been tampered with (anti-tampering provisions). There is an exception from the prohibition to sell a motor vehicle with tampered emission control system for vehicles sold at wholesale or sold with salvage or nonrepairable title.

IAA’s Position: Neutral. IAA has worked with the AG’s office on the language to exempt wholesale sales and salvage or nonrepairable vehicles.

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New Hampshire Senate Bill 442

Amended March 31, 2022

This bill would have prevented an owner from transferring ownership of a vehicle until any unpaid tolls and fees are paid. This could have affected transfer of ownership to an insurance company in total loss claim settlement. We expressed concerns with this provision.

The bill was amended and it now prevents an owner from transferring ownership of a vehicle to a family member or an individual with the same address listed in department of motor vehicle records, until such tolls and fees are paid.

IAA’s Position: Neutral

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Rhode Island House Bill 8216

Introduced May 6, 2022

This bill would make it an unfair claims practices act violation for an insurer to fail to have an appraisal performed by a licensed appraiser when a vehicle sustains damage in excess of five thousand dollars ($5,000). Current law requires an appraisal by a licensed appraiser when the damage exceeds two thousand five hundred dollars ($2,500). In addition, the bill would require the inspection be conducted within four (4) business days after a request is received.

IAA’s Position: Neutral

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Enacted Legislation

Illinois House Bill 5439 

Effective January 1, 2023 

Per IAA’s request, this bill was amended to allow for automatic processing of applications for salvage or junking certificates in order to expedite the receipt of such certificates. 

The act provides that if a salvage dealer posts annually a bond in the amount of $100,000 with the Secretary of State, the Secretary of State shall automatically process any properly submitted application by the salvage dealer for a salvage certificate or junking certificate and issue the appropriate salvage certificate or junking certificate. The act authorizes the Secretary of State Vehicle Services Department to conduct random samplings of automatically processed applications to ensure that the salvage dealer's applications for salvage certificates or junking certificates are accurate. In addition, the act specifies that applications for salvage or junking certificates submitted by a salvage dealer that are not accompanied by the most current certificate of title are not eligible for automatic processing. 

IAA’s Position: Support 

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For more information about IAA's legislative and regulatory activities, contact:  

Katerina Dotzeva
Director of Government Affairs, IAA
kdotzeva@iaai.com 

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